Dan owned a small rental property, which was condemned by the county to expand a local park. His adjusted basis in the property was $40,000 and he received a payment of $75,000 from the county. A year later he purchased a similar piece of real estate for $70,000. What is Dan’s recognized gain on the involuntary conversion of his rental property? a. 0 b. $35,000 c. $30,000 d. $10,000 e. $5,000

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